Feasibility report for redevelopment of society building is a primary step to go ahead for redevelopment.
It gives an idea to society & it’s members that after giving adequate offer of additional area, corpus and taking all the factors of expenses and expected sales, the developer can earn enough profit so that his interest in project shall remain.
Nowadays it has been practice that many consultants are preparing feasibility report on excel sheet with few parameters such as net plot area, consumed area & road width. This is not the right way. Also they don’t have any proper research to assess the market rate at which the sale will happen. These consultants prepare the feasibility report just to convince the society members and society members also selects such consultants who give them rosy picture.
Thus due to such un - professionalism, many projects are stalled in mid-way. Due to rat race, developers had given exorbitant offers and now the project is not feasible to them. The members are stuck in between and not able to digest the lesser offer. Also many of the related consultants are unable to convince the members to cut down their offer and look for betterment of the project.
There are several factors for preparing feasibility report and many factors of them are variable. Without tentative planning it is not possible to prepare feasibility report, which can also be only nearer to reality.
THE CORRECT WAY:
A. Through tentative planning, we can get to know several variable factors such as number of proposed floors, open space deficiency premium, staircase & lift premium, parking costs, type of sale flats, their saleability value, tentative construction area & costs. Even there are other costs involved due to planning constraints for which concessions has to be taken and these costs may vary for different plans & different authority officers. In different scenarios the above costs may vary upto 10-15% of the projects costs also.
B. After demonetisation & introduction of RERA, developers have to invest huge amount and the realisation of sale proceedings are as per the work progress. Hence interest costs also to be taken as major cost.
C. Secondly in-depth cash flow statement has also to be prepared for calculation of interest cost which can be either on promoter share or loan taken from financial institution.
D. Lastly, nowadays sales have become the most important criteria for all developers and it is job of specialised marketing agencies. It’s better to pay them few percentages of sales instead of taking burden of interest costs.
Hence for detailed feasibility report and which can be nearer to reality, a tentative planning is most important. The society and member shall invest some amount, get the tentative planning & reasonable feasibility report from an architect, where all the factors of expenses are considered. Also get the cash flow statement along with feasibility report for interest cost. Also check whether additional costs for concessions due to planning constraint, contingencies, site administration, marketing & sales are considered or not.
Thus for a successful and real redevelopment feasibility report cannot be prepared only on excel sheet but it can be made closer to reality by proposed planning & excel sheet prepared by Architect & Financial Consultant,
BECAUSE SUCCESS OF A PROJECT DEPENDS ON PERFECTION AND SURETY, NOT ON VAGUE FEASIBILITY.
Let us work together for giving a concrete shape to your vague ideas. Our team of Architects, Engineers, Designers, Town Planners, Bankers and NBFI leaders will help your Society in drafting the accurate Feasibility Report and the Perfect Road Map.
You just need to call us at +91 99875 39649